![Bet amounts on these platforms range from as low as Rs 10 to as high as Rs 10 lakh, depending on the interest and the odds offered. Image/News Bet amounts on these platforms range from as low as Rs 10 to as high as Rs 10 lakh, depending on the interest and the odds offered. Image/News](https://i0.wp.com/images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?resize=510%2C383&ssl=1)
Bet amounts on these platforms range from as low as Rs 10 to as high as Rs 10 lakh, depending on the interest and the odds offered. Image/News
Websites identified by mFilterIt, a company specialising in digital risk management, are offering bets on various election outcomes, including the results of individual seats and the performance of political parties at the state level
The Public Gambling Act of 1867 prohibits betting and gambling in public places but doesn’t specifically mention ‘Online Gambling’. In such cases, there are also classifications like Game of Skill and Game of Chance. All of these have created a grey area that unscrupulous operators have been exploiting, illegal apps and websites have emerged, luring users to place bets on IPL matches, and now, the high-stakes Lok Sabha polls.
As the seven-phase elections around the country are being held, fraudsters are taking advantage of the excitement and uncertainty to attract bettors. Websites identified by mFilterIt, a company specialising in digital risk management, are offering bets on various election outcomes, including the results of individual seats and the performance of political parties at the state level.
Bet amounts on these platforms range from as low as Rs 10 to as high as Rs 10 lakh, depending on the interest and the odds offered.
It was found that on one such website, a bid amount of 100 to 100,000 can be offered. There are options like BJP will win the Hisar seat or Nagpur seat. To place a bet, people can choose between ‘Back’ and ‘Lay’ options. Furthermore, while making the payment the deposit section can be seen offering Paytm UPI, QR Code, Google Pay, Quick Bank transfer, and PhonePe options, even though UPI is not allowed on such websites.
However, these betting operations are also sophisticated in their financial manoeuvres. mFilterIt has discovered that these platforms use mule accounts to launder money. Mule accounts are those bank accounts held by individuals or firms that receive money from bettors and then transfer it to the offshore accounts of these betting websites. These accounts are opened with various banks, including Canara Bank, HDFC, United Commercial Bank, RBL, PNB, SBI, DCB, Axis, and ICICI, and also via UPI IDs such as Imperiallogistics@cnrb and vyapar.167968639320@hdfcbank. For some of these online transactions, the origin was found to be in the Philippines and the US.
The money received is often transferred offshore using illicit channels like hawala and cryptocurrencies, thus bypassing traditional banking systems and tax regulations. This not only leads to significant revenue loss for the government but also undermines the integrity of the financial system.
mFilterIt scans around 5,000 websites daily, identifying 20-25 sites offering Lok Sabha election-related betting. These sites operate outside Indian regulatory frameworks, making it difficult for Indian authorities to take direct action. However, mFilterIt is working with government agencies to block the flow of money by identifying and reporting UPI IDs and mule accounts used by these websites. They report approximately 25,000 such UPI IDs and mule accounts daily to banks and regulatory bodies for action.
The trend of election betting is particularly alarming because it can influence voter inclinations and potentially affect election outcomes. This poses a menacing threat to the sanctity of India’s democratic processes. Moreover, it is primarily young people from tier 2 and tier 3 cities who are getting involved in these activities, often driven by influencers and Telegram channels promoting these betting sites as a quick way to get rich.
The rise of online betting on the Lok Sabha elections represents a significant and multifaceted threat to India’s democracy, financial system, and social fabric. It underscores the urgent need for comprehensive legal frameworks to address online gambling and robust enforcement mechanisms to curb these illicit activities. The findings and the latest trend also make it crucial for all stakeholders to be aware of and address the growing menace of election betting.